Chapter One Oil Price is Shadow Price

Today on TV One, An Indonesian local Television Live Broadcast Debate Program had established funny, critique and economic approach on increasing of oil price. Funny means TV One invited two different key speakers expert, one from politician and second is economist so they don’t understand each others. While economist talked in economic world, the politician didn’t understand well otherwise the economist didn’t understand well.

Critique means independent economist didn’t agree about the current policy to handle increasing in oil price, otherwise, the politician agreed with the government.

Topic debate on the program are talking about the current government policy; cutting oil subsidy with increase the oil price and government policy to handle the impact on poverty people with directly cash aid (Bantuan Langsung Tunai).

I don’t agree with them both. Economist talked look like he made simple classic assumption on economic, no politics and it is about pure economic, so he suggested to government with pure economic policy, on other hand the politician (belonging to government) did politics and others social aspect on his talking.

The economist said that The Current Oil price is Shadow price; not real price. The politician didn’t understand about what shadow price and real price meant. That is the funny. More deep, Economist said that The current oil price is made by investors and speculators on stock market and foreign market exchange. American Congress had been called their Americans largest oil mining to ask the fact about oil production, how much it cost?

Continue to Chapter Two $130 USD per barrel is Shadow Price

Today on TV One, An Indonesian local Television Live Broadcast Debate Program had established funny, critique and economic approach on increasing of oil price. Funny means TV One invited two different key speakers expert, one from politician and second is economist so they don’t understand each others. While economist talked in economic world, the politician didn’t understand well otherwise the economist didn’t understand well.

Critique means independent economist didn’t agree about the current policy to handle increasing in oil price, otherwise, the politician agreed with the government.

Topic debate on the program are talking about the current government policy; cutting oil subsidy with increase the oil price and government policy to handle the impact on poverty people with directly cash aid (Bantuan Langsung Tunai).

I don’t agree with them both. Economist talked look like he made simple classic assumption on economic, no politics and it is about pure economic, so he suggested to government with pure economic policy, on other hand the politician (belonging to government) did politics and others social aspect on his talking.

The economist said that The Current Oil price is Shadow price; not real price. The politician didn’t understand about what shadow price and real price meant. That is the funny. More deep, Economist said that The current oil price is made by investors and speculators on stock market and foreign market exchange. American Congress had been called their Americans largest oil mining to ask the fact about oil production, how much it cost?

Continue to Chapter Two $130 USD per barrel is Shadow Price